PAYE confusion when going back to permie while Ltd is still ticking for a while

[Michael at BI Accountancy]

When I went through this last year, HMRC wouldn't deal with the issue until the first RTI submission was received from the new employer.

Ah yes sorry, HMRC will require the first RTI submission as without it they don't know who your new employer is (and where to issue the new tax code to)!

[Chart Accountancy]

My "cloud" accountants said, I can't be a director and not be PAYE registered. So I assume I would need to start liquidation proceedings if I wanted to deregister and get a P45? I'm not ready for that yet.

Sounds like I will just wait for the first pay slip and phone up HMRC for more suitable tax codes. As people say, I will still need to do SA anyway as I owe HMRC dividend tax.

Thanks for clarifying so quickly , guys

This used to be true when all reimbursment of expenses needed to be declared on a P11D or covered by dispensation and as in most cases as a director you incur out of pocket expenses, a payroll is required for the P11D submission. However, from the 2016-17 tax year the reporting of the reimbursment of business expenses has been removed. Therefore, you will only need the payroll open if you have taxble benefits to report. Even if this is the case, you can still be issued a P45 should you stopped receiving a salary from your company. If you give the P45 to your new employer, they will update your tax code on the next month payment run. This is cleaner than trying to explain this to HMRC over the phone as all that HMRC could do is to transfer your jobs so your permanent employment is your primary job against which you apply the personal allowance but it is likely they will issue a W1M1 tax code so it is best to get a P45 from your company.